Santa Ana Merchant Fights Move to Make Downtown More Upscale

A veteran Santa Ana merchant who shopped downtown as a child has filed a lawsuit complaining that recent restructuring of the Downtown Santa Ana Business Assn. will undermine her business and the very flavor of the city’s center.

The lawsuit heightens years-long tension between Santa Ana civic leaders and some merchants over efforts to create a more chic downtown -- possibly at the expense of generations-old, ethnic mom-and-pop businesses.

The lawsuit, filed by Elsa Gomez last week in Orange County Superior Court, seeks to nullify the association’s May 21 vote that replaced the 20-member board of directors with four smaller nonprofit groups, a move that critics say dilutes opponents’ voices.

“We are totally out of the picture. We are not informed and we have no voice,” said Gomez, 36, owner of Pacific Coast Tax Service. Like other business owners in the 30-block area around 4th and Main streets, Gomez pays the city for a business license and half of that money goes to the association for promotions and improvements.

Veteran downtown merchants say decisions in recent years by the 600-member association -- including cutbacks in downtown promotions -- are poorly veiled efforts to remove businesses that make up the largest Latino shopping district in Orange County.

Matt Lamb, executive director of the association, could not be reached for comment.

This is the first time the battle has gone to court.

At stake is an area unlike the suburbs around it. Downtown Santa Ana has the look and feel of Mexico.

Carts sell mixed fruit and dried pork rinds on nearly every corner. Spanish is the language of choice and dollars can be easily converted into pesos.

Travel agencies offer specials to Mexico and elsewhere in Latin America. Money-changing storefronts can quickly wire funds to the families of local immigrants.

But despite the thriving businesses, Santa Ana officials have talked of reshaping the downtown scene. The city has provided economic incentives to developers of mainstream restaurants, shops and artists’ studios. In recent months, artists lofts have been built alongside immigrant businesses. Most recently, the city has promoted plans to convert 2nd Street into a pedestrian shopping promenade.

Gomez’s suit alleges that the elimination of the association’s promotion budget has reduced the benefits she would have received as a member and that there was not proper public notification of the board meeting when the restructuring occurred.

Board member Ray Rangel, who has owned R & R Western Wear for 49 years, said he did not know about the reorganization plan until minutes before the 10-to-7 vote approving it.

“We are paying [fees],” Rangel said. “But we are getting nothing. We can’t even figure out what is going on.”

He complained that he learned of plans for a promenade in a Chamber of Commerce newsletter rather than through the association.

Gomez resigned from the association board in May after President Arturo Lomeli, who backs plans to revitalize downtown with new, upscale businesses, was quoted in a Spanish-language newspaper criticizing the current dominance of Spanish-speaking clientele.

Lomeli said the board must make decisions “based on what they think is best for the majority. [Gomez] does not speak for the whole” business district. He said the reorganization was discussed with merchants for two months before the vote.

Association Vice President Teresa Saldivar, a jewelry store owner, said few downtown business owners support Gomez.

“We are talking about five or six people who don’t like change. They do not want to let go,” Saldivar said. “They just want Hispanics in the downtown. They do not want progress.”

Gomez, however, said many merchants feel left out. Independent of the lawsuit, Gomez has collected more than 100 signatures from merchants who want to disband the downtown business association.